China blacklists the owner of Calvin Klein and Tommy Hilfiger, PVH Corp., placing it on its 'unreliable entities' list due to alleged refusal to source cotton from Xinjiang. This action could lead to store closures, manufacturing restrictions, and employee deportations, highlighting the escalating tensions in the US-China trade war.
The owner of prominent fashion brands Calvin Klein and Tommy Hilfiger , PVH Corp., has been placed on China 's 'unreliable entities' list , triggering a wave of potential repercussions for the company's operations in the country. This blacklisting, which allows the Chinese government to levy fines, restrict trade activities, and revoke work permits, comes as a direct response to recent U.S. trade actions, including a 10% tariff imposed on Chinese imports by President Donald Trump.
PVH's extensive manufacturing presence in China, with approximately 18% of its suppliers and factories located there, makes it particularly vulnerable to these measures.The company was placed on the blacklist reportedly due to its alleged refusal to source cotton from the Xinjiang region, a region marred by controversy over the detention of Uyghur Muslims. This action by China is widely viewed as a retaliatory move in the ongoing trade war between the U.S. and China. Experts suggest that China aims to demonstrate its willingness to take decisive actions against U.S. companies or those with significant U.S. interests.The implications for PVH are significant. China could force the closure of its numerous stores across the country, prohibit online sales, and potentially deport its employees. Moreover, China's ability to restrict manufacturing activities within its borders could compel PVH to relocate its production facilities, leading to potential disruptions in supply chains and quality control. While the exact steps China will take remain uncertain, the situation presents a substantial risk to PVH's business operations in China. The company has expressed its surprise and disappointment over the decision, stating its commitment to compliance with all relevant laws and regulations. It remains to be seen whether the Trump administration will attempt to intervene and mitigate the impact on PVH
PVH Corp. Calvin Klein Tommy Hilfiger China 'Unreliable Entities' List Trade War Xinjiang Manufacturing Supply Chain US-China Relations
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